Euro higher after hawkish comments. Can it last?

Again we’ve seen a mixed dollar performance with a few major releases. The yen performed well with another down session in equities.

USDJPY continues to trade heavily as exporters step up their sales and longs established in the last week are getting unwound, with a lower US curve also weighing on the USD, as well as safe-haven flows.

Euro again ran up higher yesterday following hawkish comments by policymakers. I’m honestly not very convinced with this Euro movement, and I do feel it’s extremely speculative.

Sterling rose from 1.6220 to high of 1.6275 after BoE minute before trading to low of 1.6180 in NY with real money accounts selling. Bank of England minutes showed one more policymaker voting for an interest rate hike this month

Data today

German GDP – 7am GMT

Eurozone consumer confidence – 10am GMT

Eurozone economic, industrial and services confidence – 10am GMT

US initial jobless claims is due today -1.30pm GMT

US Durable goods orders – 1.30pm GMT

US new home sales – 3pm GMT

US house price index – 3pm GMT